Oral Answers to Questions

Debate between Tom Hayes and Chris Ward

Thursday 5th March 2026 Commons Chamber

[Chris Ward]

My hon. Friend raises a serious point, which builds on the last question, which the Minister of State, Cabinet Office, who is also the Security Minister, answered, and the question about digital ID. If it is okay with my hon. Friend the Member for Dudley (Sonia Kumar) , I will write to her about the steps that the Department is taking and how we are working across Government on this important matter.

[Tom Hayes (Bournemouth East) (Lab)]

16. What recent discussions he has with the European Commission on linking UK and EU emission trading systems.

[The Parliamentary Secretary, Cabinet Office (Chris Ward)]

As part of our new partnership with the EU, we are currently negotiating an agreement to link emission trading schemes. This will lower costs for businesses and consumers, and, alongside the food and drink deal mentioned previously, add £9 billion a year to our economy. My right hon. Friend the Minister for the Cabinet Office speaks regularly with Commissioner Šefčovič on this, and we will keep the House updated on progress.

[Tom Hayes]

The EU’s carbon budget amendment mechanism came into being on 1 January. It affects the IFA2 interconnector between Britain and France, which I visited recently. CBAM is a trade block for UK electricity exports to the EU, imposing costs on exporters of £2.2 billion, and it robs the Treasury of up to £8 billion at a time when we need that money to invest in our public services and to have a stronger buffer against external shocks. Does the Minister agree that we should not be shooting ourselves in the foot and throwing away money, as the Conservatives would do, and that we should instead be boosting trade, boosting energy security, boosting our national security and seeking an exemption from CBAM?